SEC approves $ 28 million sale of Blockstack tokens

The US Securities and Exchange Commission (SEC) has approved a public offer of Blockstack startup tokens worth $ 28 million. The company will launch an online sale of tokens on July 11th.

According to The Wall Street Journal, the permission was given in accordance with the “A +” regulation of the SEC regulations. And while other companies have previously used the capabilities of the “A +” clause, this is the first time that investors receive a token, and not company shares.

The “A +” provision was introduced in 2012 and is an alternative to an IPO focused on startups that need early funding. In accordance with the rules, any member of the public can participate in a round of financing.

Despite the fact that the “A +” provision contains softer disclosure requirements than an IPO, it has a strict limit on the amount of funds raised – the maximum amount is $ 50 million within 12 months.

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The SEC decision can be a precedent for the cryptocurrency industry. Startup founders Munib Ali (Muneeb Ali) and Ryan Shea (Ryan Shea) reportedly spent 10 months and about $ 2 million to get SEC approval. Ali said that the company had to develop a protocol for launching a regulated ICO through the “A +” position from scratch.

The fact that Blockstack plans to raise $ 50 million through the sale of its token shares in accordance with the A + clause set by the SEC was first announced this spring.